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Green national accounting: why and how?

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  • ASHEIM, GEIR B.

Abstract

The present paper gives an overview of the theory of green national accounting. Three purposes of green national accounting (measurement of welfare equivalent income, sustainable income, or net social profit) and two measures (Green NNP and wealth equivalent income) are considered. Under the assumption of no exogenous technological progress, Green NNP is shown to equal wealth equivalent income if there is a constant interest rate or if consumption is constant. It is established as a general result that sustainable income wealth equivalent income welfare equivalent income, while Green NNP welfare equivalent income under no exogenous technological progress and a constant utility discount rate. Green NNP is shown to measure gross social profit rather than net social profit.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 5 (2000)
Issue (Month): 01 (February)
Pages: 25-48

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Handle: RePEc:cup:endeec:v:5:y:2000:i:01:p:25-48_00

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  1. Asheim, Geir B, 1994. " Net National Product as an Indicator of Sustainability," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 96(2), pages 257-65.
  2. Withagen, Cees & B. Asheim, Geir, 1998. "Characterizing sustainability: The converse of Hartwick's rule," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 23(1), pages 159-165, September.
  3. repec:nsr:niesrd:73 is not listed on IDEAS
  4. Van Liedekerke, Luc & Lauwers, Luc, 1997. "Sacrificing the Patrol: Utilitarianism, Future Generations and Infinity," Economics and Philosophy, Cambridge University Press, vol. 13(02), pages 159-174, October.
  5. Asheim, G.B. & Buchholz, W. & Tungodden, B., 1999. "Justifying Sustainability," Papers, Norwegian School of Economics and Business Administration- 5/99, Norwegian School of Economics and Business Administration-.
  6. Asheim, Geir B, 1997. " Adjusting Green NNP to Measure Sustainability," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 99(3), pages 355-70, September.
  7. Asheim, Geir B., 1996. "Capital gains and net national product in open economies," Journal of Public Economics, Elsevier, Elsevier, vol. 59(3), pages 419-434, March.
  8. Dixit, Avinash & Hammond, Peter & Hoel, Michael, 1980. "On Hartwick's Rule for Regular Maximin Paths of Capital Accumulation and Resource Depletion," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 47(3), pages 551-56, April.
  9. Vincent, Jeffrey R. & Panayotou, Theodore & Hartwick, John M., 1997. "Resource Depletion and Sustainability in Small Open Economies," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 274-286, July.
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